Launching a startup is exciting news for any business owner. However, even the most skilled entrepreneurs out there need to always be prepared. If you don’t take the correct steps for launching your startup, it might not turn out to be what you expected. 

In other words, this approach means that you are taking a risk and trusting your abilities and ideas. The real question is, how do you get started? What do you need to do to make your startup successful? 

In this article, we’ll dive deeper into learning more about which steps you should take in order to be successful on the launch date. 

1. Create your business plan

There’s no such thing as a successful startup without a well-structured business plan. In the beginning, you want to develop a structured and clear layout of your goals and projections. 

You will present this to investors and other interested people who can help you out on your way to success, so creating the proper business plan is important. In fact, 70% of startups that survived for five years or more followed a strategic business plan. 

Before you create your business plan, there are two important categories that you need to know about: 

• Traditional: The traditional business plan model is the most popular one. It does require a bit more work, but in the end, your plan will be more detailed. A traditional business plan includes a company description, market analysis, strategy, and financial projections. 

• The lean startup: Not as popular as the traditional business plan, but is popular for those who want to quickly get their idea out. Lean startup business plans will include details such as who you work with, what resources you’ll need, what your company stands for, and your strategies that will successfully carry out your plan. 

The type of business plan you choose will strongly depend on what you are aiming for. Does the lean startup business plan or the traditional one belong to you? 

2. Conduct market and competition research 

When you are a startup, know that competition is high since you are just getting started and you haven’t built enough reputation to stand out from competitors. Therefore, it’s important to do your research. This includes knowing your main competitors that are selling the same product or service you are. 

Study more about your competitors, and learn about their clients and business as much as you can. If you want to effectively conduct a competitor analysis, here’s what you should do: 

• Compare product features: Price, target audience age, services, product design and style, ease of use, product quality, warranties, product quality, and customer support level. 

• Compare product marketing: Analyze which channels your competitors are promoting on. What kind of website copy do they have? Are they using paid ads? What story are they trying to tell? What’s their brand voice and mission? 
• Use a SWOT analysis: What can you improve? What do you do well? What are the market trends as of now? 

To make everything simple, it’s best to pick out 5-10 competitors and do research about them. After all, many competitors in the market aren’t directly competing with your product, so it’s important to notice this. 

3. Write your privacy policies 

Data privacy laws are important if you want to comply with standards set by the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). Every online business that collects and processes personal data needs to have a privacy policy on their website. 

Data privacy regulations worldwide have different requirements regarding data processing and data subject rights. The GDPR and CCPA require every business to notify data subjects about data collection, usage, security, and rights. 

Understanding these requirements is essential for drafting a privacy policy that complies with all standards and communicates user rights. Complying with privacy policies will depend on which region you live in. For example, if you are selling your product and service to an EU audience, the GDPR will apply to you, but if you are in another area like California, you’ll need to comply with the CCPA. 

Of course, these aren’t the only privacy policies around. You need to first check up on your local privacy policies. Each country has its own rules, but the whole idea is to make sure the consumer knows how and why you are using and collecting their data. They should always have the right to modify and delete their data. 

4. Use Employee Stock Ownership Plans (ESOP) or Phantom Stock Ownership Plans (PSOP)

This may be an interesting tip since some startups won’t consider it as an option. Let’s dive deeper into comparing the two, and see which is more beneficial when it comes to PSOP vs ESOP: 

• Phantom Stock Plan (PSOP): PSOP doesn’t give employees direct ownership of stakes in the company as ESOP does. They are used as a method for rewarding employees for their contributions in the earlier business stages. Instead of rewarding direct ownership, it gives employees cash value whenever there is an exit event that might be a public listing or acquisition. A phantom share has a nominal value that is paid by employees when the company exists and exercises their right to a cash settlement. As the company’s value increases, so will the phantom stock. This is more of a long-term win for you. 

• Employee Stock Ownership Plan (ESOP): Unlike PSOP, ESOP offers employees direct ownership of stakes in the company. ESOP encourages employees to give it their all since their contribution results in financial rewards. ESOPs are commonly used for facilitating succession planning, allowing company owners to sell his or her shares and transition out of the business. 

When it comes to what kind of choice you make between the two, there’s something you need to know. Phantom stock grants financial gains directly to a company’s performance metrics. Also, you can use phantom stock as a method of rewarding employees who meet certain goals for the company. 

On the other hand, ESOP has been used for a long time and is used by private companies to incentivize employees who have key positions in the company. Even though they do offer an exit event, Phantom stock seems to be a slight winner. However, it doesn’t always mean that it’ll be the winner as this depends on what the organization is trying to achieve. 

5. Build up your network and foster relationships 

If there’s one thing that will save you when starting in business, it’ll be your network. According to the Bureau of Labor statistics, around 50% of startups will fail during their first five years. While there are many different reasons for failure, having a small network can strongly influence your success rate.  

There’s not a single entrepreneur that can succeed without building and maintaining a strong professional network. This includes participating in networking events, conferences, and industry gatherings where you can meet investors, clients, and partners who align with your business goals. 

There are plenty of other ways that you can build your network, such as expanding your network on social media channels like LinkedIn, online forums, and professional groups that can offer you valuable networking opportunities. 

6. Secure intellectual property (IP) rights and other legal requirements 

Your startup’s IP, including patents, copyrights, trademarks, and trade secrets can serve as valuable assets that give you an upper hand over competitors in the market. IP rights protect your innovations, ideas, and intangible assets. 

Seeking professional legal counsel will make sure that your IP rights are properly protected and enforced, guarding your startup’s future from any illegal acts. 

While IP is important, there are other legal requirements that you should take care of. Whenever you investigate these requirements, you need to make sure you take advantage of the following resources: 

• Government websites 
• Reputable blogs 
• Tax specialists that are in your region 

Once you’re done with those resources, it’s now time to answer the following questions: 

• What is my specific tax class and how is it affecting my business plan? 
• Is my product or service conflicting with regional or international laws? 
• Do I need any licenses for the product or service I am offering? 
• What kind of labor laws does my region offer? 

It’s always important to clarify what kind of legal requirements you need to follow because if you don’t, they might get to you sooner or later. 

Your startup is on the road to perfection

Every startup might have a hard time in the beginning, but when you take the right steps, your path to success will only get easier over time. These six practical tips will be a good hand when it comes to helping you succeed with your new business. 

Create your business plan, analyze your competitors, write your privacy policies, choose between ESOP or PSOP, build up your network, and make sure you are following all necessary legal requirements.

About The Author

Tony Ademi is a freelance SEO content and copywriter. He has been in the writing industry for three years and has managed to write hundreds of SEO-optimized articles. Moreover, he has written articles that have ranked #1 on Google. Tony’s primary concern when writing an article is to do extensive research and ensure that the reader is engaged until the end.